New Delhi, Sept. 10: The defence ministry has asked its research organisation to submit a report within 15 days on allegations that Brazilian firm Embraer paid commissions to win a $208 million contract to supply three aircraft.

Three Embraer EMB-145 were supplied to the Defence Research and Development Organisation (DRDO) for one of its laboratories, the Centre for Airborne Systems, to develop the Airborne Early Warning and Control Systems (AEW&C).

Indian defence rules forbid the use of commission agents. But investigations by the US justice department and in Brazil have found evidence that the Brazilian firm paid a UK-based agent to be favoured for the Indian contract in 2008, Brazilian newspaper Folha de Sao Paolo reported this week.

"Embraer is cooperating with the investigations and announced in July that it was expecting to reach a deal soon with American authorities. The company has put US $200 million aside to pay any eventual fines that come about as a result of the process," the newspaper reported.

Defence ministry sources in New Delhi said they were surprised by the investigations. "We would have expected to be part of them," said an official.

The contract was signed in 2010 when the defence minister was A.K. Antony in the UPA II regime.

The aircraft were modified for the DRDO to install command and control systems on and inside the airframe. The AEW&S planes were to be delivered to the Indian Air Force three years ago. But they are still under development. The current DRDO chief, S. Christopher, was the head of the project before he was deep-selected by the Modi government last year to be the organisation's director-general.

The Brazilian newspaper said Embraer was being investigated for deals concluded in Saudi Arabia and India after an employee "with more than 30 years at the company reached a plea-bargain agreement in investigations being conducted by the Federal Public Prosecutor's Office here in Brazil."